AICPA CPA-Auditing Exam - Topic 2 Question 115 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 115
Topic #: 2

Which of the following is true about management representations obtained during an engagement to review the financial statements of a nonissuer?

AWritten representations from the current management are required for all periods being reported on.

BWritten representations with respect to prior periods should not be provided by the current management if they were not present during those periods.

CWritten representations should be addressed to members of management whom the accountant believes are responsible for and knowledgeable about the matters covered in the representation letter.

DWritten representations need not include information concerning subsequent events.

Show Suggested Answer

Suggested Answer: A

Choice 'a' is correct. Written representations from the current management are required for all periods being reported on.

Choice 'b' is incorrect. Written representations from the current management are required for all periods being reported on, even if the current management was not present during all such periods.

Choice 'c' is incorrect. Written representations should be addressed to the accountant. The letter should be signed by members of management whom the accountant believes are responsible for and knowledgeable about the matters covered in the representation letter.

Choice 'd' is incorrect. Written representations should include information concerning subsequent events.

by Angella at Jul 29, 2025, 09:58 PM

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Glory

2 months ago

C is spot on, it’s all about who’s in the know.

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Kandis

2 months ago

I agree with B, it makes sense for them not to comment on prior periods.

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Jean

3 months ago

Wait, D? No info on subsequent events? That seems off.

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Fredric

3 months ago

I think A is misleading, written reps should be more flexible.

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Shawna

3 months ago

A is definitely true, management needs to cover all periods.

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Frank

3 months ago

I thought written representations had to include subsequent events, so I'm leaning towards D being incorrect.

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Floyd

4 months ago

I feel like C makes sense because it talks about addressing the right people in management, but I can't recall if that's a strict requirement.

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Karan

4 months ago

I remember something about management not needing to provide representations for periods they weren't involved in, so B might be correct.

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Mira

4 months ago

I think written representations are definitely required, but I'm not sure if it's for all periods or just the current one.

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Eugene

4 months ago

I feel confident about this type of question. The standards are clear that written representations are required from current management for all periods, and the representations should be addressed to the appropriate individuals.

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Cheryll

4 months ago

Okay, I think I've got this. The key is understanding the specific requirements for management representations in a nonissuer review, which differ from an audit.

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Loreen

4 months ago

Hmm, I'm a bit unsure about this one. I'll need to review the relevant standards to make sure I have the right approach.

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Galen

5 months ago

This question seems straightforward, but I want to make sure I understand the key points about management representations for a nonissuer review engagement.

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Laquita

7 months ago

Haha, I bet the person who wrote this question is an accountant with a dry sense of humor. 'Nonissuer' - that's a new one for me!

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Joanna

5 months ago

A) Written representations from the current management are required for all periods being reported on.

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Linn

7 months ago

I'm going with B. It wouldn't be fair to hold current management responsible for things that happened before they were there.

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Darci

7 months ago

D is not correct - subsequent events are crucial for a proper review of the financial statements.

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Laila

7 months ago

C seems like the best option to me. Addressing the representations to the right people is key for ensuring accuracy and accountability.

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Mireya

5 months ago

Definitely, making sure the right people are involved in the process is essential for a successful engagement.

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Jules

5 months ago

Yes, C is definitely the most logical choice. It helps in holding the right people accountable for the information provided.

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Pearline

5 months ago

I think C is the correct answer too. It ensures that the information provided is accurate and reliable.

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Sina

5 months ago

I agree, C does seem like the best option. It's important to address the representations to the right people.

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Vesta

5 months ago

Yes, it's crucial for the accuracy and accountability of the financial statements.

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Nathalie

7 months ago

I agree, C does seem like the best option. It's important to address the representations to the right people.

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